Bank Indonesia Maintains 3.50 Percent Interest Rate

Governor of Bank Indonesia Perry Warjiyo (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) has decided to keep the BI 7-Day Reverse Repo Rate (BI7DRR) at 3.50 percent.

This policy was taken by the central bank taking into account inflation that remains low and the stability of the rupiah exchange rate is maintained, as well as efforts to strengthen the economic recovery.

"Bank Indonesia also continues to optimize the accommodative monetary and macroprudential policy mix and supports further economic improvement efforts", said BI Governor, Perry Warjiyo, in a virtual press conference after the Board of Governors' Meeting (RDG) on Thursday, August 19.

In VOI records, the monetary authority has cut interest rates by 150 basis points (bps) in six declines since last year. This amount is also the lowest in the history of Bank Indonesia in response to the current pandemic conditions in the country.

"Bank Indonesia continues to strengthen synergies with the Financial System Stability Committee (KSSK) to optimize policy implementation", he said.

BI also did not change the deposit facility rate at 2.75 percent and the lending facility interest rate at 4.25 percent.

"Bank Indonesia is also increasing coordination with the government to encourage economic growth, including coordination of monetary and fiscal policies, policies to increase exports, as well as policies to expand financial inclusion in society", he said.